What is B2B e-commerce? Business-to-business selling explained
B2B (business-to-business) is selling goods or services to other companies rather than to individual consumers. B2B e-commerce moves that trade online, typically with customer accounts, negotiated prices, larger repeat orders and payment on invoice terms.
How B2B differs from B2C
| B2B | B2C | |
|---|---|---|
| Buyer | A company, often several people approving one order | An individual buying for personal use |
| Pricing | Account-specific prices, volume discounts, quotes | One public price, promotions |
| Payment | Invoice terms, bank transfer, purchase orders | Card or wallet at checkout |
| Orders | Larger, recurring, reordered from history | Smaller, more occasional |
Payment terms
Many B2B buyers pay after delivery. In a hypothetical example, a customer places a $5,000 order on 30-day terms: you ship now, send an invoice, and record the revenue while the cash arrives a month later. In the EU, the Late Payment Directive (2011/7/EU) says the payment period fixed in a contract between businesses should not exceed 60 calendar days unless expressly agreed and not grossly unfair to the creditor, and entitles the creditor to interest for late payment without needing a reminder. Credit terms improve sales, but they tie up working capital, so decide which accounts get them.
Why the distinction matters legally
Consumer protection law is written for consumers. The EU Consumer Rights Directive applies to contracts between a trader and a consumer, defined as a natural person acting outside their trade, business, craft or profession. A company buying for its business is usually not covered by, for example, the 14-day right of withdrawal, so your own terms of sale decide returns and cancellations. Tax treatment can also differ between business and consumer customers (see VAT and place of supply), which is why B2B checkouts usually collect a company name and tax ID.
Common mistakes
- Running business buyers through a consumer checkout with no way to save accounts, reorder or pay by invoice.
- Showing account-specific prices to the public, or public prices to accounts that negotiated better ones.
- Treating every buyer who enters a company name as a business without checking the tax ID, which can lead to charging the wrong tax.
- Measuring B2B only by conversion rate; order value and repeat orders matter more (see AOV).
On CIQRA, B2B accounts, discounts and checkout are included in every Commerce plan.